mortgage application, credit score - have we any chance?

[RunMaxRun]

Hello, thanks in advance for any words of wisdom! I know we won't know for sure til we apply.

We're first time buyers and til recently didn't think we'd ever be in a position to buy, but have inherited £25-30k for a deposit. We've seen a house we love, vendors are likely to accept £93k should we make an offer.

Countrywide advisor said DH can apply, probably to Halifax, on his £19k salary (I'm self-employed on £8k)

We've just checked our credit scores, mine is good, DH is between poor/very poor!
Turns out he went £30 overdrawn on a Lloyds account he barely uses last year, spoke to them at the time, they agreed not to apply charges, then he forgot to repay it, and didn't give them new address when we moved in Dec . We also got behind with water rates (in his name) last year, and are still repaying (2 months left). There's nothing else we can think of that can have affected his score.

How massive a problem is this?

Are you using a Countrywide broker because the estate agent pushed you to see their mortgage broker? Before you go any further you might want to consider an independent broker rather than someone who will be in the same office as the EA and can tell them the maximum mortgage you can get.

You may find that you can get a mortgage but not at as good an interest rate than someone with a better credit score. Have a read up on MoneySavingExpert - lots of info and advice there.

No offence Op, but if you were a lender, would you lend £65k+ to someone who can't pay a £30 overdraft and a water bill?

You've not even saved your deposit, it's been gifted to you.

This might be placeable somewhere but I really wouldn't get your hopes up.

I would work on improving your credit score before going any further.

10 years ago you wouldn't have had a problem. Nowadays it won't be so quite so easy.

I'm not saying that the broker won't be able to place you somewhere, but it won't be a high street prime lender (so not a fabulous rate).

If you can wait a bit & get your DH's credit file sorted out you'll stand a much better chance.

Thanks for replies and advice all. No offence taken, Bear - it's all there in my OP after all!

wowfudge - we were steered towards the Countrywide broker by a different EA - he's not connected to the EA selling the house we're interested in.

I would have a look on the mortgages section of money saving expert website as there are lots of mortgage advisers on there who might be able to give you more information as to your situation.

Good luck and I hope it works out for you.

Thanks LaFlottes! Will do that.

My understanding is that brokers who don't really know their stuff use Halifax as a benchmark because they only do a 'soft search' at the decision in principle stage.

The theory being, if Halifax say no without a full credit search, you've got no virtually no chance anywhere.

The massive downside to this is that you get your hopes up if your DIP is agreed, only to have your application declined when the full credit check is done.

As I said before, being on a repayment plan for a water bill is not a good start for someone who wants to take on a mortgage and it won't bode well to a lender.

Having said that, not all utility bills appear on credit reports but the fact you don't have enough disposable income to clear the debt in one go will be visible to a lender.

Mortgae lending is based on affordability nowadays, not income multiples.

Find yourself a decent broker who looks at both of your credit reports (each with a 3 agencies) and makes a decision where to apply based on your actual circumstances and not just a shot in the dark with Halifax.

If they suggest hanging fire until your credit records clean up then that's probably your only option.

No one on MSE will be able to give you specific advice based on your circumstances. Mortgage brokering is a regulated industry so brokers are not allowed to make recommendations/ suggestions without following certain procedures, hence can't do it on a public forum- they'll just recommend you speak to a good broker.

I've never headed good things about countrywide, I would go to an independent broker.

Headed?? Heard, stupid phone.

Thanks Bear and Jeffrey, I appreciate the advice.
We'll def shop around for another broker first, and prepare for a long wait!